Energy Efficiency Deduction Extended through 2020

Energy Efficiency Deduction Extended through 2020

Prior to the close of 2019 congress and the president reinstated the Energy Efficiency Tax Deduction for Commercial Buildings (§179D). The 179D incentive allows a deduction up to $1.80 per square foot for energy efficient property installed in new or remodeled buildings. It behaves similarly to bonus depreciation by allowing an immediate write-off of depreciable basis for the building envelope, HVAC, and lighting.

Building Owners and Designers of government-owned buildings (architects and engineers) can now claim the §179D deduction for projects completed during 2018 through the end of 2020.